2025 Notice of Funding Opportunity (NOFO)

2025 NOFO HUD AAP

2025 NOFO Slideshow

Funding for eligible public services programs, and special housing and infrastructure projects will be available during the 2025/26 Program Year through our CDBG and HOME allocations from HUD.  Final funding for selected programs are awarded by City Council with approval of the 2025 Annual Action Plan tentatively scheduled in May 2025.

Application submittal deadline: Friday February 21, 2025 5:00 pm   please see NOFO public notice for all details

Requirements to apply for CDBG/HOME funds

-Organization must be an established non-profit organization in the local area

-Organization must register with SAM.GOV when applying for federal funding

-Organization must attend one of the two mandatory workshops posted below

2025-26 Application Packet-Forms, Guidebook, HUD regulations

1. 2025-26 CDBG App Submittal Checklist (fill-in)

2. 2025-26 CDBG Application (fill-in)

3. 2025-26 CDBG Appendix C-1 (fill-in)

4. 2025-26 Appendix C-2(a) Service Project Budget(fill-in)

5. 2024-25 AppendixC-2(b)ConstAcqRehab Budget (fill-in)

6. Appendix C-3 supplemental funding questions (fill-in)

7. CDBG & HOME APPLICATION GUIDELINES_122724

2024 HUD CDBG Income Limits (thru spring 2025)

2024-01873 Federally Mandated Exclusions from Income (1-31-2024)

2025 HUD Qualified Census Tract Map

1. 2025-26 CDBG App Submittal Checklist (fill-in)

If you would like to be added to our non-profit organization mailing list, please email the Housing Division at housing@cityofmerced.org.  We will need your organization's name, mailing address, phone number, and general email address. 

Organizations should be sure to register with Sam.gov when applying for federal funding.  More information is provided further below.

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ABOUT THE FUNDS:

The City of Merced is an "Entitlement City" participating in the Community Development Block Grant (CDBG) and Home Investment Partnership (HOME) Programs, which are Federal programs with annual allocations distributed by the United States Department of Housing and Urban Development (HUD) each year, usually by mid-February.  The City of Merced's Housing Division (that's us!) administers and oversees the needs assessment, planning, distribution, implementation of projects, and reporting of accomplishments each year on behalf of HUD and the City.

CDBG funding is subject to Code of Federal Regulations (CFR) under HUD Title 24 Part 570 - Community Development Block Grants (full regulation posted in a downloadable PDF below), with the City's allocation determined using a formula that accounts for population, poverty, and the age and condition of the housing stock, of which up to 15% can be used towards public service programs in the community.  All funding must be used for the benefit of individuals and households residing within the city limits of Merced (no outlying County areas or County islands).

Expenditure of CDBG funds is limited to eligible activities only, and must meet at least one of three National Objectives listed in 24 CFR 570.208.  Therefore, subrecipient programs that are awarded funding must also meet one of these National Objectives, the most common being the first National Objective -- that the program assist Low to Moderate Income Residents.  Local community-based non-profit organizations can apply for these funds to use towards projects and services that complement the Goals, Needs, and Priorities established in the current Consolidated Plan and each subsequent Annual Action Plan.  A minimum of 70% of CDBG funds must benefit low- to moderate-income persons within the City limits of Merced, but the City strives to meet this at 100% of funding.

The City of Merced also receives funding from HUD's Home Investment Partnership Program (HOME) each year under a similar formula distribution.  HOME grant funds are subject to the Code of Federal Regulations under Title 24 CFR Part 92 (downloadable PDF is posted below), and like CDBG funds, can only be used for certain activities, including construction of new rental or homebuyer housing, rehabilitation (alteration, improvement, or modification of existing structures), reconstruction (rebuilding of housing on the same lot), conversion (conversion of a structure to affordable residential housing), and acquisition of appropriate property for residential rental purposes.  100% of all HOME funds must benefit low- to moderate-income persons and households.

Funding Opportunity Information:

Organizations interested in applying are REQUIRED to attend at least one of the meetings/workshops.  If you do not come to one of the meetings, you must schedule a Technical Assistance appointment with Housing Staff (info below) to ensure that you have the information you need to present an eligible project.  This is important, as your application will be rejected if your project is not HUD-eligible.

When virtual meeting attendance options are offered, we typically use Microsoft Teams online conferencing software.  Here are your access options:

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Technical Assistance Appointments:  Housing Division staff are available by appointment to assist with developing your project proposal.  This assistance may include helping you with forms and applications, explaining the process for submitting proposals, explaining federal and local requirements specific to your project, explaining the fund disbursment/reimbursement process and the documentation that is necessary, answering any other questions you may have, or providing comments and input to your draft application to ensure that it meets HUD's National Objective and Activity Eligibility requirements.  We are here to help you! 

Please call 209-385-6863 or email housing@cityofmerced.org to request an appointment.

When received, proposals will be screened by Housing staff to ensure they meet HUD's National Objective and Eligibility requirements.  Proposals determined to be eligible may then be scored through an informal point rating system, as recommended by HUD, in order to determine the capacity of each organization to carry out their proposed program.  

Award of funding is expected to be finalized at a second Public Hearing to be held (tentatively) at the City Council meeting of Monday, May 5, 2025, with approval of the 2025 Annual Action Plan/2025-29 Consolidated Plan.  Following Council approval, the Plan will be submitted to HUD for approval, which will include final approval of the proposed projects.  Contracts will be drafted after HUD approves the Annual Plan.  Contract amounts greater than $38,000 will require further City Council approval and more time for final contract execution, due to the City's Procurement policies.

The 2025 Program Year begins on July 1, 2025, and ends on June 30, 2026.  If Council approves your project and awards funding, projects will usually be considered to have started on July 1, so eligible costs will be reimburseable from that point on.

For additional information or clarification of any of this information, please call 385-6863 (voice), or send E-mail to: housing@cityofmerced.org.

You are encouraged to contact the following person(s) for information regarding projects or services you may be seeking funding for in the coming year. 

Kimberly Nutt, Housing Program Supervisor

Email

Requests for Funding Requirements:

Please note: The Application Submittal Checklist and both Appendix C-1,  C-2 (a) or (b), and C-3 must be included with Funding Application submissions.  Please remember to include a current copy of your organization's Certificates of Insurance, Organizational Charts, and other documents as required per the application checklist (download link below).

All applicants are subject to the Federal Requirements for Notice of Funding Opportunities, 2 CFR Section 25.200.  As such, to apply for HUD funds, your organization must register with a Unique Entity Identification (UEI) number with the Federal System for Award Management (SAM): sam.gov/content/home prior to applying for City of Merced HUD funds and maintain your active SAM status with current information.

We will require that you download and review the "CDBG & HOME Funding Application Guidelines" and "Playing by the Rules Handbook" to help you apply for funding and to understand the administrative requirements of these funding sources.  Also, there is a guidebook, HUD's "Cost Principles for Non-Profit Organizations" circular, and other regulations that grant subrecipients are expected to be in compliance with, as well.

The "fill-in" submittal checklist, main application, and required appendixes forms are posted below.  

Paper submittal of application packets should be single -sided, including all required attachments (please no electronic submittals). 

If you have any questions, please email the Housing Department at housing@cityofmerced.org.

Thank you!

Application Forms, Guidebooks, and HUD Regulations: